SOLUTIONS
This is not traditional commercial real estate financing. Condominium Lending Group provides financing to registered condo corporations and strata corporations, including mixed-use buildings with commercial units, ground-floor retail, office space, shared parking structures, or commercial common elements.
The loan is made to the corporation, not to individual owners, tenants, or commercial unit holders. Repayment is structured around common expense or strata fee collection, not rental income or property purchase financing.
For illustration, a 150-unit mixed-use building with retail at grade and residential units above may need $1,800,000 for parking garage restoration, lobby rehabilitation, building envelope repairs, or other commercial common element work. The commercial component may affect how costs are allocated, but the financing is still made to the corporation, not to individual owners, tenants, or commercial unit holders.
Financing Structure
Guarantees
Against Unit Titles
Initial Response Time
THE PROBLEM
Mixed-use condo corporations often sit in the wrong category when they approach a lender.
Traditional commercial lenders usually evaluate income-producing properties. They look at rental income, debt service coverage, leases, appraised property value, and mortgage security. That model does not always fit a registered condo corporation.
A condo corporation collects monthly contributions from owners. Decisions run through a board, bylaws, owner approvals, and provincial condominium or strata legislation. Security is usually taken against the corporation’s personal property through a General Security Agreement, not through a mortgage registered against individual units.
The commercial component adds another layer. A mixed-use building may include retail units, office units, shared parking, loading areas, commercial lobbies, or common elements used by both residential and commercial owners. Costs may be allocated differently, and the board has to explain the structure clearly before owners are asked to approve anything.
That is where standard commercial real estate financing often breaks down. The building has commercial elements, but the borrower is still the corporation.
THE FINANCING OPTION
Condominium Lending Group structures financing for mixed-use condo corporations and strata corporations where the commercial component adds complexity, but the borrowing need still belongs to the corporation.
Some files involve capital repair financing for commercial common elements. Others involve reserve fund financing where commercial units affect contribution shares or cost allocation. Some involve shared parking structures, retail frontage, loading areas, building envelope repairs, or lobby rehabilitation.
The loan is made to the corporation. Owners and commercial unit holders do not apply for individual loans. Tenants are not the borrower. Repayment is collected through the corporation’s approved contribution structure.
We review the building’s structure, the project, the corporation’s financial position, the commercial component, and the required approval process before recommending a financing path.
LENDER FIT
Standard commercial mortgage lenders are used to properties that produce income. A mixed-use condo corporation does not operate that way. It may have commercial units in the building, but the corporation itself is not usually borrowing against rental income.
The repayment source is different. The approval process is different. The security is different. The documentation is different.
That is why a file can stall with commercial lenders even when the corporation itself is financially sound. The lender may ask for documents that do not apply, evaluate the building like an income property, or overlook how common expenses and owner contributions actually support repayment.
Condominium Lending Group reviews the corporation’s governance structure, financial statements, reserve fund position, project need, cost allocation, and approval path. The commercial component matters, but it does not automatically make the file a traditional commercial mortgage financing file.
MIXED-USE PROJECTS
Mixed-use financing usually starts with a building problem, not a generic commercial mortgage request. These are the files we see most often.
Commercial common element repairs may include lobbies, corridors, entrances, loading areas, mechanical systems, shared roofs, exterior walls, or other spaces used by commercial and residential parts of the building.
Mixed-use buildings often have parking structures used by residential owners, commercial owners, tenants, customers, or visitors. Parking restoration can involve waterproofing, concrete repair, drainage, traffic coating, and structural review.
Ground-floor retail and shared lobby areas can create cost allocation questions. Financing can help the corporation complete the work while the board works through the approval and repayment structure.
Building envelope repairs can affect both residential and commercial units. The work may involve cladding, waterproofing, exterior walls, windows, doors, balconies, or other systems that protect the building.
Mixed-use corporations can face reserve fund shortfalls where commercial components affect contribution shares or project allocation. Financing can help close the gap without collecting the full cost from owners upfront.
Some mixed-use corporations have non-standard declarations, shared facilities, phased components, or separate residential and commercial contribution structures. These details matter before financing terms are presented to owners.
HOW IT WORKS
Most corporations receive an initial response within one business day. The full timeline depends on the building structure, the project, the documents available, and the approval process required in your province.
Send us a short summary of the building, the commercial component, the financing need, and the timeline the board is working with.
We review the reserve fund study or depreciation report, financial statements, budget, project details, cost allocation, commercial unit structure, and any timing issues. From there, we give the board a preliminary view of what financing may look like.
Once the financing structure is confirmed, the board can present the repayment terms, estimated owner impact, approval requirements, and commercial allocation considerations to owners. We provide clear financing summaries so the board is not trying to explain the numbers from scratch.
After the required approvals are complete, funds are advanced directly to the corporation. Repayment begins through monthly common expense contributions, strata fees, or the corporation’s approved contribution structure.
WHO WE WORK WITH
We work with registered corporations where the financing need belongs to the building, even when the building includes commercial units or non-standard governance.
Condo corporations where the building contains both residential units and commercial spaces, including retail, office, parking, shared amenities, or commercial common elements.
Corporations requiring financing for repairs or improvements to commercial common elements, including retail frontages, loading areas, lobbies, parking structures, and shared mechanical systems.
Strata corporations with commercial strata lots, shared facilities, or common property repairs where the contingency reserve fund is not large enough to cover work identified in the depreciation report.
Corporations with phased developments, shared facilities, bare land strata, separate contribution schedules, or declarations that create additional review before financing can be approved.
Boards that need to explain how repayment is allocated between residential and commercial owners before asking owners to approve financing.
Yes. Condominium Lending Group works with mixed-use condo corporations as well as purely residential corporations. The presence of commercial units or commercial common elements adds complexity, but it does not automatically disqualify the corporation.
The review focuses on the corporation’s financial position, contribution structure, governance requirements, project need, and ability to repay.
No. Traditional commercial real estate financing is usually designed for income-producing properties. Lenders often evaluate rent rolls, leases, net operating income, cap rates, appraised value, and mortgage security.
Mixed-use condo corporation financing is different. The borrower is the registered corporation. Repayment is based on common expenses, strata fees, or the corporation’s approved contribution structure. The file is reviewed through the lens of condo corporation governance, not property acquisition or rental income.
Standard commercial mortgage lenders often expect a property-level mortgage, rental income analysis, or borrower documents that do not fit a condo corporation. A condo corporation does not operate like a landlord or a commercial property owner.
The decision-making process also differs. Boards may need owner approval, a borrowing bylaw, or other province-specific steps before financing can be finalized.
Yes. Financing can be used for commercial common element repairs where the work belongs to the corporation. This may include retail frontage, shared lobbies, loading areas, parking structures, exterior walls, mechanical systems, roofs, or other common areas used by the building.
The specific structure depends on the corporation’s declaration, contribution schedule, reserve fund position, and project details.
Yes. Mixed-use strata corporations may qualify where the financing need belongs to the strata corporation and the corporation has the ability to repay. These files may involve commercial strata lots, shared common property, or a contingency reserve fund shortfall.
We review the depreciation report, financial statements, governance structure, and approval path before recommending a financing structure.
Yes, if the work belongs to the corporation. Financing may cover parking structure repairs, retail frontage work, shared lobby upgrades, loading areas, building envelope repairs, mechanical systems, and related professional fees.
The final structure depends on the project cost, reserve fund position, approval requirements, and repayment capacity.
Cost allocation depends on the corporation’s declaration, bylaws, contribution schedule, and the nature of the work. Some projects are shared by all owners. Others may affect commercial and residential components differently.
The board should review allocation questions with its legal and property management team before presenting financing to owners.
TALK TO A SPECIALIST
Tell us how your building is structured, what commercial components are involved, what the project may cost, and what timeline the board is working with. We will review the situation and explain what financing could look like before your board commits to a final owner communication or approval process.
